More Equity Likely Coming to Home Owners

Spread this news: Home prices nationwide, including distressed sales, rose year over year by 7.1 percent in November 2016 compared to November 2015, CoreLogic’s Home Price Index shows.

Expect more price jumps ahead too, although at a more modest pace. Home prices likely will increase by 4.7 percent nationwide on a year-over-year basis from November 2016 to November 2017, according to CoreLogic’s forecasts. We believe our area will increase by over 6 percent.

Source: “Home Price Index Highlights: November 2016,” CoreLogic (Jan. 3, 2017)

“Speed Up Short Sales,” Fed’s New Policy?

 The Federal Housing Finance Agency Federal Housing Finance Agency announced a new policy to speed up the process that mortgage servicers use to handle short sales, deeds-in-lieu, and deeds-for-lease for mortgages that are backed by Fannie Mae and Freddie Mac.

The FHFA, the regulator of Fannie and Freddie, says the new policy includes a revised timeline that will require mortgage servicers to respond to a request for a short sale offer within 30 days. Servicers also will be required to make a final decision on the short sale offer within 60 days.

For any short sale offer still under review after 30 days, banks will be required to provide weekly status updates to borrowers regarding the pending short sale offer.

The new policy, which will roll out in stages starting in June, aims to “prevent foreclosures, keep homes occupied, and help maintain stable communities,” says Edward DeMarco, the FHFA’s acting director. “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

The FHFA also says that by the end of the year there will be additional announcements from Fannie and Freddie that are aimed at addressing borrower eligibility and evaluation, simplifying documents, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance. Please provide your thoughts about this policy?

Source: Federal Housing Finance Agency